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Nottingham Building
Society
Results for the year ended
31st December 2024
Nottingham Building Society
delivers a strong financial performance in 2024, driven by a 37 per
cent growth in new mortgage lending, driving strong
profitability
Key Performance Indicators
('KPIs')
The KPIs disclosed below are based on the position at
31st December or for the 12-month period ended
31st December, unless otherwise stated. The average
Liquidity Coverage Ratio ('LCR') represents a 12-month average for
the year ended 31st December 2024.
· £1,215m gross new
lending (2023: £887m), representing
an increase of £328m (37%);
· £4.2bn total mortgage
assets (2023: £3.6bn), representing growth of
£0.6bn;
· 9,166 new mortgage
customers (2023: 6,957), an increase
of 32%;
· £4.4bn total savings
balance (2023: £3.6bn), an uplift of
£0.8bn;
· £154.6m total interest paid
to savers (2023: £91.8m), an increase
of £62.8m;
· £13.9m profit before
tax (2023: £8.3m), representing an increase of
£5.6m;
· 4.9 Trustpilot
score (2023: 4.9);
· 61.5% net promoter
score (2023: 64.6%);
· 3,522 colleague volunteering
hours (2023: 2,462);
· £22.8m underlying profit
before tax (2023: £24.2m), representing
a decrease of £1.4m;
· 1.72% net interest
margin (2023: 1.94%), being an absolute decrease of
0.22%;
· 72.7% cost : income
ratio (2023: 71.7%), an increase of 1.0%;
· 73.0% underlying cost :
income ratio (2023: 70.5%), an increase
of 2.5%;
· Expected Credit Loss ('ECL')
coverage ratio of 12bps (2023: 15bps), a decrease of
3bps;
· Nottingham Building Society
("the Society") continues to manage its
Capital and Liquidity positions in
excess of regulatory requirements, demonstrated
by:
o 13.7% Common Equity
Tier 1 ('CET1') Ratio (2023:
15.2%);
o 4.9% Leverage
Ratio (2023: 5.2%); and
o 172% average
LCR (2023: 184%).
Sue
Hayes, Chief Executive Officer ('CEO') commented:
"2024 was a highly successful year for Nottingham Building
Society - and the Society is now its largest in asset terms than at
any time in its 175-year history - we have reached a record level
of £4.2bn in mortgage assets and £5.2bn in total
assets.
Our strong set of results for 2024 are driven by a 37%
increase in gross new mortgage lending, an uplift in new business
margins and continued strong customer service
feedback.
We
helped 32% more customers own their own home by taking out a
mortgage with us for the first time or moving to a new
mortgage.
Most importantly our strategy of supporting those who find it
more difficult to get a mortgage in the first place has started to
be evidenced and we are establishing our Society as a specialist
residential lender. In 2024, we launched a new proposition aimed at
foreign nationals living in the UK, supporting those entering the
country to support our valued service sector to own their own
home.
Our mortgage balances increased by 18.6% compared with the
previous year, whilst overall lending in the UK mortgage
market has fallen. Our total mortgage assets have grown by 40 per
cent since we began our transformation journey in
2022.
We
were delighted to welcome more savings customers to the Society via
our online savings app as well continuing our commitment to
passbooks for our branch customers - leading to an increase of 22%
in our savings balances. As interest rates remained high throughout
the year, we focused on paying savers the best rates we can whilst
investing to strengthen the Society. In total, we paid £154.6m in
interest to savers in 2024.
We
maintained our Trustpilot score of 4.9 reflecting our exceptional
service that we know is highly valued by our
customers.
We
are proud that we have seen an increase in statutory profit
enabling us to invest for our members and make good progress in
delivering our strategy. We invested in our technology, our brand
and in developing our propositions to ensure our Society is well
placed for the future.
We
took the decision to provide voluntary financial support to those
members impacted by Philips Trust Corporation.
Looking ahead, we believe it is important to enable a market
where saving is encouraged and incentivised and alongside other
Societies, we advocate for the current cash ISA regulations to be
maintained.
I
am proud of the results we are sharing today and would like to
thank our members for their continued trust and support to the
Society. In 2025, the sector celebrates 250 years of building
societies and we are more committed than ever to the mutual values
that we know are fundamentally important and highly valued by our
members."
Sue Hayes
Chief Executive Officer
5th March 2025
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